Which of the following is not an advantage of standard costing?
A) Standard costing provides a basis for sensible cost comparisons.
B) Standard costing provides a means of performance evaluation.
C) Standard costing can be a motivational tool for employees.
D) Once standards have been set, they need not be revised, resulting in a more efficient accounting department.

Question

Quizplus · Accepted Answer

Standards need to be revised periodically to reflect changes in the business environment such as inflation, changes in technology or market conditions. This ensures that they remain relevant and reliable. Therefore, the statement that once set, standards need not be revised is not true and is not an advantage of standard costing.

Which of the Following Is Not an Advantage of Standard